How To Make The Switch From Renting To Owning A Home More Manageable
Wednesday, January 25, 2017, 6:00 AM | Leave Comment
After a good amount of time in a rental, many people choose to transition from renting to owning a home.
When you own a home, you purchase an asset that can appreciate in value, thus increasing your overall wealth.
However, with homeownership, you are responsible for certain costs that a landlord may have previously taken care of, such as utilities or repairs.
When moving from renting to owning, stay organized to make sure that the process is as smooth as possible.
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Check your credit score
When purchasing a house, one of the most important things to maintain is a good credit score.
A strong credit score will help you qualify for a favorable mortgage interest rate. Before purchasing any home, make sure to pay off credit cards and personal debt.
Also, make sure to pay all of your bills on time to avoid late payments, which can impact your credit score.
You should also check your credit score on a regular basis to make sure that there is nothing detrimental there that could affect your ability to get a loan.
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Budgeting is important
When owning a home, you will want to create a detailed budget of all of your expenses to make sure you save enough for your mortgage.
In addition, you will want to add a few extra dollars to your savings account in case of any added expenses for utilities or unexpected repairs.
For example, when renting, if the roof suddenly begins to leak, you can consult the landlord who will repair the damaged section.
However, as a homeowner, if you have problems with your roof or any other unforeseen expense, you will be required to pay for it yourself.
If you’re unsure as to what to add to your budget, you may want to anyone you know who owns a home so they can share their experiences.
You may also want to consult a financial planner.
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Prepare to be a handyman
For minor repairs, you may have to learn how to be your own handyman. This means that you will have to learn how to perform small tasks that the landlord or property manager may have done for you while renting.
Before owning a house, invest in a toolkit just in case you need to tighten a screw or repair a doorknob.
For anything major, you may want to consult a contractor. These kinds of things may also be addressed by realty professionals before the sale, like those at Mark Fox Company, so you don’t end up paying for repairs the sellers are responsible for.
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Investigate other sources of income
When you move into your home, you may feel you need other forms of income as a cushion should something arise.
Think about obtaining a part time job before and after the purchase of a home.
In addition, you may want to think about renting to a roommate to minimize some of your additional costs.
Ultimately, owning a home can be financially lucrative if you are up to the challenge. Stay organized and diligent and you can safely and efficiently move from renting to buying a house that you love.
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